Debenture Redemption Reserve (DRR)-Clarification.

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..... bers of Commerce Reserve Bank of India Securities and Exchange Board of India Subject:- Debenture Redemption Reserve (DRR)-Clarification. One of the measures that the Central Government took to protect the interests of small investors in Companies Act was to insert Section 117C in the Companies (Amendment) Act, 2000 which contemplates the creation of security and liquidity to ensure timely rep .....

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..... on the part of the company to create DRR if there is no profit for the particular year. The Department of Company Affairs (DCA) has received a number of representations from Public Financial Institutions, Non-Banking Financial Companies, Professionals, FICCI, CII, Chambers, etc. seeking clarifications in this regard. The matter was considered keeping in view the purpose of the introduction of S .....

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..... s. For other FIs within the meaning of Section 4A, DRR will be as applicable to NBFCs registered with RBI. b. For NBFCs registered with the RBI under Section 45-IA of the RBI (Amendment) Act, 1997, 'the adequacy' of DRR will be 50% of the value of debentures issued through public issue as per present SEBI (Disclosure and Investor Protection) Guidelines 2000 and no DRR is required in the case of p .....

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